Contractors face axe over demands for tram money

TRANSPORT chiefs are considering dumping the German firm at the centre of the trams contract row as it emerged that it had already claimed extra money from the project.

But any move to get rid of Bilfinger Berger could set the 512 million scheme back a year.

The News has learned that high-level talks have taken place with other members of the consortium hired to build the line which would see Bilfinger Berger dropped if ongoing crisis talks fail.

The BSC consortium – comprising the firms Bilfinger Berger, Siemens and CAF – has stunned tram firm TIE with demands worth 50m-80m for work to begin on Princes Street.

It is understood that tram bosses have already had a number of claims from Bilfinger Berger, including one demanding a seven-figure compensation sum for extra work it carried out in the west of the city which was eventually agreed as a five-figure settlement.

If parts of the project do need to be put out to tender again it is feared this could take up to a year. Despite the Princes Street work being put on hold, a raft of city centre traffic diversions got under way today after transport officials ruled it was too late to unpick diversions.

Councillor Gordon Mackenzie, the city's finance leader and TIE board member, said: "It is a crucial time for the project.

"The contract does need to allow for sufficient movement on both sides, but on this type of issue it is no time to back down."

The News understands the conflict between TIE and its contractors stretches back months, with concerns raised at the lack of preparations made by Bilfinger Berger.

The amount being claimed is understood to be around the same as a contingency fund kept for the Princes Street work. The claims have been rebuffed by tram bosses, who signed a fixed-price contract for the work last May.

Councillor Steve Cardownie, the city's deputy leader, said: "We warned this could turn into a Holyrood on wheels."

A spokesman for Bilfinger Berger said: "As the client failed to meet contractually agreed conditions and as no agreement has been reached, construction work in Princes Street cannot yet commence.

"Contrary to reports, additional costs of 80m have never been requested as a pre-condition for the start of works in Princes Street."